Product recalls are major newsworthy events, mainly because they can be on a large scale, and often they don’t happen until or unless someone gets hurt or killed. It is not always the case, of course. Currently, Tesla Motors is recalling a number of electric cars pre-emptively because due to loose framing. Tesla proactively admitted to the error and is repairing it.
This seems to be the exception to the rule, however. Product or food recalls are noteworthy because they often imply that something has already happened or will happen imminently. For the sake of the company and its customers, it is a safe route to be aggressive with recalls and be prompt.
We have a couple of real-life examples of what is possible, and we’ll get to watch the headlines together in the coming months and years. Federal investigators are looking into a couple of delayed recalls currently – one at General Motors over ignition switches that was noticed before 2010; and one at Graco, which delayed in recalling child car safety seats.
Products and food are recalled not by order of a federal agency, but by request. Many companies perform a cost-analysis surrounding the decision to recall. Would it be cheaper for a company to spend the money upfront to recall the food or product and fix the problem, or would they be willing to gamble that the cost of potential lawsuits would be better for the bottom line?
We hate to say it, but sometimes the bottom line, rather that personal safety and health, is favorable in these decisions. And when a recall is delayed, regardless of the reason, the company may then discover that the problem was bigger than originally perceived, and for the sake of saving face and money, the company decided to move forward with the recall rather than fight lawsuits.
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This seems to be the exception to the rule, however. Product or food recalls are noteworthy because they often imply that something has already happened or will happen imminently. For the sake of the company and its customers, it is a safe route to be aggressive with recalls and be prompt.
What can happen if recalls are delayed? And what might be the liability issues associated with a delayed recall?
We have a couple of real-life examples of what is possible, and we’ll get to watch the headlines together in the coming months and years. Federal investigators are looking into a couple of delayed recalls currently – one at General Motors over ignition switches that was noticed before 2010; and one at Graco, which delayed in recalling child car safety seats.
Products and food are recalled not by order of a federal agency, but by request. Many companies perform a cost-analysis surrounding the decision to recall. Would it be cheaper for a company to spend the money upfront to recall the food or product and fix the problem, or would they be willing to gamble that the cost of potential lawsuits would be better for the bottom line?
We hate to say it, but sometimes the bottom line, rather that personal safety and health, is favorable in these decisions. And when a recall is delayed, regardless of the reason, the company may then discover that the problem was bigger than originally perceived, and for the sake of saving face and money, the company decided to move forward with the recall rather than fight lawsuits.
Also Read :
- Airbag recall could affect millions of vehicles
- Keurig recall could affect millions of coffeemakers
- Auto recalls in 2015 could involve more than just car parts
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